What to do about Brexit

Friday was an interesting day for Britain (and Europe) and as we all know, the Brexit vote has had an immediate impact on bond and sharemarkets around the world. These are the very kinds of market events our clients’ portfolios are built for. We never take risks that aren’t worth taking and the portfolios we construct Read more…

The 7 Truths of Investing in a Volatile Stockmarket

Volatility is back. Just as many people were starting to think the stockmarket only ever moves in one direction, the pendulum has swung back the other way. Anxiety is a completely natural response to these events. Acting on those emotions, though, can end up doing us more harm than good. There are a number of Read more…

Heads or Tails? Either Way, You Might Beat a Stock Picker

Imagine a world where investors in the stock market have no skill whatsoever. The investors themselves don’t understand this, however, and many truly believe that they are good at what they do. But in this thought experiment, there’s no doubt about the underlying reasons for fund managers’ success: When they turn in an outstanding performance, Read more…

Down the Investment Mineshaft

Success in investment doesn’t just mean knowing what risks to take. It also means avoiding the uncompensated risks associated with laying out big bets on individual companies or sectors. In February 2008, the global credit crisis was underway. With investors in a defensive mood, The Australian Financial Review suggested that the minerals resource sector of Read more…

Investment: No Free Lunches

It’s the nature of investment that people will pay a premium for the promise of a “certain” outcome. But research shows these supposed guarantees often come with hidden costs and risks attached. Imagine an investment product that is sold as lifting your chances of meeting your retirement needs from 60% to 65%. A second product Read more…